Released February 19, 2014 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - A U.K. company has been granted the first licences to explore for offshore shale gas in the Irish Sea.
If successful, it would be the first time that the controversial technique known as hydraulic fracturing - or fracking - would be used to find shale gas offshore. The licences were granted by the U.K. government to Nebula Resources, whose CEO, Dr. Chris Cornelius , founded fracking specialist Cuadrilla Resources Ltd (Lichfield, England).
The licences cover an area off the coast of Blackpool into Morecambe Bay, a deposit Cornelius said is a continuation of the onshore Bowland shale region in northern England. Bowland shale is a long belt of gas-filled rock measuring more than a kilometre wide at sites in Fylde, Lancashire.
"As we've seen over the last five years, the onshore route is not the most beneficial route for the U.K. so two years ago I looked around at what the opportunities were in various parts of the offshore sector and found that blocs were open near the Bowland shale," Cornelius told media. "I applied for them and was awarded them two weeks ago. Certainly offshore shale gas is a new concept, and there's no reason with the U.K.'s history of offshore development that we can't develop these resources offshore."
A report last year from the British Geological Survey estimated that approximately 1.3 quadrillion cubic feet of gas was contained within shale formations under the Bowland region - around twice the amount that was previously predicted for the whole of the U.K..
Two companies, Cuadrilla and iGas (London, England), are exploring shale gas resources in the Bowland and Lancashire regions. In June 2013, energy and gas company Centrica plc (OTC:CPYYY) (Windsor, England) became the first large utility to enter the budding U.K. shale gas sector, when it bought a 25% share in exploration licenses on the Bowland shale for £40 million ($60.8 million) from Cuadrilla.
The U.K. government is determined to kick-start a shale gas revolution to replace its depleted oil and gas industry, announcing significant tax breaks to attract investors to the sector by offering to halve the tax they pay on profits. For additional information, see August 2, 2013, article - Shale Gas Tax Breaks for U.K..
Two weeks ago Cuadrilla Resources announced the proposed locations for two new exploration sites in the Fylde. It plans to apply for planning permission to drill, hydraulically fracture and test the flow of gas from up to four exploration wells on each of the sites, one at Roseacre Wood and the other at Preston New Road.
"We've been working hard to assess our site options and have undertaken extensive technical and geological analysis," said Francis Egan, Cuadrilla's chief executive. "As a result of this work, we have decided to focus on just two sites at this time. This will allow us to reduce the potential impact on the local area during exploration while still gathering the important information we need to determine how much gas could be recovered. We're committed to being a good neighbour and to talking with the community at every stage of the process."
The U.K. government is expected to launch its next licensing round to explore for shale resources this summer.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
If successful, it would be the first time that the controversial technique known as hydraulic fracturing - or fracking - would be used to find shale gas offshore. The licences were granted by the U.K. government to Nebula Resources, whose CEO, Dr. Chris Cornelius , founded fracking specialist Cuadrilla Resources Ltd (Lichfield, England).
The licences cover an area off the coast of Blackpool into Morecambe Bay, a deposit Cornelius said is a continuation of the onshore Bowland shale region in northern England. Bowland shale is a long belt of gas-filled rock measuring more than a kilometre wide at sites in Fylde, Lancashire.
"As we've seen over the last five years, the onshore route is not the most beneficial route for the U.K. so two years ago I looked around at what the opportunities were in various parts of the offshore sector and found that blocs were open near the Bowland shale," Cornelius told media. "I applied for them and was awarded them two weeks ago. Certainly offshore shale gas is a new concept, and there's no reason with the U.K.'s history of offshore development that we can't develop these resources offshore."
A report last year from the British Geological Survey estimated that approximately 1.3 quadrillion cubic feet of gas was contained within shale formations under the Bowland region - around twice the amount that was previously predicted for the whole of the U.K..
Two companies, Cuadrilla and iGas (London, England), are exploring shale gas resources in the Bowland and Lancashire regions. In June 2013, energy and gas company Centrica plc (OTC:CPYYY) (Windsor, England) became the first large utility to enter the budding U.K. shale gas sector, when it bought a 25% share in exploration licenses on the Bowland shale for £40 million ($60.8 million) from Cuadrilla.
The U.K. government is determined to kick-start a shale gas revolution to replace its depleted oil and gas industry, announcing significant tax breaks to attract investors to the sector by offering to halve the tax they pay on profits. For additional information, see August 2, 2013, article - Shale Gas Tax Breaks for U.K..
Two weeks ago Cuadrilla Resources announced the proposed locations for two new exploration sites in the Fylde. It plans to apply for planning permission to drill, hydraulically fracture and test the flow of gas from up to four exploration wells on each of the sites, one at Roseacre Wood and the other at Preston New Road.
"We've been working hard to assess our site options and have undertaken extensive technical and geological analysis," said Francis Egan, Cuadrilla's chief executive. "As a result of this work, we have decided to focus on just two sites at this time. This will allow us to reduce the potential impact on the local area during exploration while still gathering the important information we need to determine how much gas could be recovered. We're committed to being a good neighbour and to talking with the community at every stage of the process."
The U.K. government is expected to launch its next licensing round to explore for shale resources this summer.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
